Stern's legal team had insisted that the radio host deserved increased financial compensation because he played a key role in Sirius and XM's merger.

A New York State Supreme Court judge formally rejected Stern's lawsuit this week, ruling that Sirius XM had not acted unethically in its dealings with the radio host, reports Reuters.

Judge Barbara Kapnick wrote in her findings: "While it may be true that Stern and Buchwald hoped and expected to reap the benefits from any significant growth that Sirius experienced after they entered into the agreement, that subjective expectation cannot suffice to override the clear, unambiguous language of [their contractual] agreement."

Sirius XM released a statement applauding the ruling. Lawyers for Stern have not yet offered any public comment.